HOUSINGNEWS REPORT
RUST BELT RENTAL TOUR
DETROIT (WAYNE COUNTY) RENTAL TRENDS
AVG FAIR MARKET RENT (3-BEDROOM)
ESTIMATED GROSS ANNUAL RENTAL YIELD
RENTAL MARKET PROFILE: DETROIT (WAYNE COUNTY) • Median Home Price: $73,500 (Up 13 percent) • Average Fair Market Rent for 3-Bedroom: $1,329 (up 3 percent) • Potential Gross Annual Rental Yield: 21.7 percent (down 9 percent)
60.0%
$1,329
$1,296
$1,172 $1,206 $1,212 $1,234
50.0%
$986 $1,017 $1,018 $1,022 $1,007 $1,023 $1,023
40.0%
30.0%
20.0%
Sources: ATTOM Data Solutions, HUD
10.0%
0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
“The majority of our housing stock here was built in the 1950s and 1960s. We always position ourselves to buy at a discount. We have tenants lined up before we’re done. Our homes are occupied within 30 days of completion.”
MICHAEL JORDAN PRESDIENT, STRATEGY PROPERTIES
find properties on market and off market. He estimated his company makes 80 offers a week and acquires 25 to 30 properties a month. “The majority of our housing stock here was built in the 1950s and 1960s. We always position ourselves to buy at a discount. We have tenants lined up before we’re done. Our homes are occupied within 30 days of completion,” said Jordan. The homes Strategy Properties acquires are in class C plus and B neighborhoods with working class homes. The typical house has three
bedrooms and one bathroom, although some do have as many as four bedrooms and two bathrooms. As for rent, Jordan said he sticks to the $800 to $1,200 range. “You just have to work hard,” Jordan said. “You have to change with the market, not let the market change you.”
before decelerating to 3.5 percent by August 2018.
“Indianapolis is a nice place to live. The winters are short and the cost of living is what attracts people. There are good employment opportunities,” said investor Jasmine Willois, president of the Note Assistance Program, a Newport Beach, California-based company that helps investors buy mortgage notes that can turn into rentals.
Racing Along in Indianapolis Known as the home of the
Indianapolis Motor Speedway and the Indianapolis 500, Indianapolis also saw double-digit unemployment rates during the Great Recession — as high as 10.6 percent in February 2010
Willois said the market has been moving steadily and slowly in the
18
NOV 2018 | ATTOM DATA SOLUTIONS
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